Correlation Between FLOW TRADERS and Aya Gold
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and Aya Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FLOW TRADERS and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and Aya Gold Silver, you can compare the effects of market volatilities on FLOW TRADERS and Aya Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in FLOW TRADERS with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Aya Gold.
Diversification Opportunities for FLOW TRADERS and Aya Gold
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FLOW and Aya is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and FLOW TRADERS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FLOW TRADERS LTD are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and Aya Gold go up and down completely randomly.
Pair Corralation between FLOW TRADERS and Aya Gold
Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 0.61 times more return on investment than Aya Gold. However, FLOW TRADERS LTD is 1.63 times less risky than Aya Gold. It trades about 0.23 of its potential returns per unit of risk. Aya Gold Silver is currently generating about 0.13 per unit of risk. If you would invest 2,144 in FLOW TRADERS LTD on October 30, 2024 and sell it today you would earn a total of 208.00 from holding FLOW TRADERS LTD or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. Aya Gold Silver
Performance |
| Timeline |
| FLOW TRADERS LTD |
| Aya Gold Silver |
FLOW TRADERS and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and Aya Gold
The main advantage of trading using opposite FLOW TRADERS and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, Aya Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aya Gold will offset losses from the drop in Aya Gold's long position.| FLOW TRADERS vs. SYSTEMAIR AB | FLOW TRADERS vs. CARSALESCOM | FLOW TRADERS vs. Air New Zealand | FLOW TRADERS vs. CarsalesCom |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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